Property Valuation
In the income approach for South Carolina commercial properties, which of the following is a direct capitalization technique?
ADiscounted cash flow analysis
BNOI divided by a market-derived capitalization rate✓ Correct
CGross rent multiplier
DCost segregation analysis
Explanation
Direct capitalization divides a single year's NOI by a market-derived cap rate to estimate value. It is simpler than discounted cash flow (DCF) analysis, which projects future income streams over multiple periods.
Related South Carolina Property Valuation Questions
- In South Carolina, a 'broker price opinion' (BPO) is used by:
- In South Carolina, what is a 'certified residential appraiser' versus a 'licensed residential appraiser'?
- What is the 'band of investment' technique used for in South Carolina commercial appraisals?
- In South Carolina, the 'principle of balance' in appraisal holds that:
- In South Carolina, a 'drive-by appraisal' (Exterior-Only Inspection) would likely be ordered when:
- In South Carolina, which factor is LEAST likely to influence the appraised value of a residential property?
- A comparable sale in the South Carolina sales comparison approach is adjusted upward when the comparable has a feature that:
- What is 'effective age' in South Carolina real estate appraisal?
Practice More South Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Carolina Quiz →